What is Choice Hotels International 5-Year ROIIC %?
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Choice Hotels International's 5-Year ROIIC % for the quarter that ended in Dec. 2024 was 8.16%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Choice Hotels International's 5-Year ROIIC % or its related term are showing as below:
CHH's 5-Year ROIIC % is ranked better than 61.48% of 771
companies
in the Travel & Leisure industry
Industry Median: 2.66
vs CHH: 8.16
Choice Hotels International 5-Year ROIIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Choice Hotels International's 5-Year ROIIC %
For the Lodging subindustry, Choice Hotels International's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Choice Hotels International's 5-Year ROIIC % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's 5-Year ROIIC % falls into.
Choice Hotels International 5-Year ROIIC % Calculation
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Choice Hotels International (NYSE:CHH) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Choice Hotels International 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Choice Hotels International's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
As of Dec. 31, 2024, Choice Hotels operated 654,000 rooms across the economy, midscale, upscale, and extended-stay segments. Comfort Inn and Comfort Suites are the largest brands (26% of the company's total domestic rooms), while Ascend and Cambria (10% of total domestic rooms) are newer lifestyle and select-service brands. Choice closed on its Radisson acquisition in August 2022, which added about 70,000 rooms. Franchises account for 100% of total revenue, and the United States represent 78% of total rooms in 2024.
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